My husband and I thought this house was going to be our forever home. Pre-kids, we spent a lot of money fixing this house to how we wanted. He made a spare bedroom into my walk-in closet, he made a movie theater for himself in the basement, all pumbling, electrical, heat pump, roof, windows etc. etc were upgraded. We probably dropped about 75-100K into fixing this house on our own. Having kids made us realized we needed more space and converting a bedroom into a walk-in closet was a mistake, making the theater was a mistake, the house was getting smaller and smaller, so we went to buy another house in a better school district. Currently, that home is being rented at $2900. Home was bought at 505K, we put 75-100K into fixing the home and if we sold at our current market it would be 550K. I can't let that house go becasue we put so much money into it and if we sold it, paid a real estate agent, we can't really recoup our money. My husband thinks we should sell it after our rent agreemetn is up with the current tenants, but should we even consider having this home for retirement income. So here I am seeking opinions from smart Mustachians. If the consensus is to keep it, i'm going to work on paying the Heloc off.
Home Purchase was 505K with a 30 year term
Home can be sold in our current market at 550K
Rent recieved is $2900 and 3 years contract ending in May 2017, we are very confident that we will get this amount or more for rental and at least 2 years contract for each renter, and we can afford to be selective in our renters.
Mortgage includes taxes adn insurance at 401K (29 years left) which is $2378 per month @3.6%
Heloc 48K at $266 per month at 5.86%
HOA is $7 per month
Lawn service is $100 per month
we don't pay anything else.
HHI at 310K and we are not struggling by any means to keep the house, so expenses are not an issue.
Thanks in advance!